The American Revolution, the Civil War (1861–65) and World War I (1914–18)
(a) diverted U.S. resources from peace-time, private uses and toward war-related uses.
(b) encouraged the efficient allocation of resources.
(c) increased long-term investment opportunities.
(d) resulted in the excessive contraction of money to finance war efforts.
(a)
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Which of the following equations correctly represents nominal exchange rate?
A) Nominal exchange rate = units of foreign currency/1 unit of domestic currency B) Nominal exchange rate = 1 unit of domestic currency/100 units of foreign currency C) Nominal exchange rate = 100 units of domestic currency/1 unit of foreign currency D) Nominal exchange rate = units of foreign currency/100 unit of domestic currency
Bicycle helmet laws are designed to reduce the severity of injuries resulting from bicycle involvement in traffic accidents. In this sense, the helmet laws are reducing ________ of risky behavior
A) positive externalities B) negative externalities C) transactions costs D) the efficiency
Which of the following is a liability of the Federal Reserve?
A) currency B) mortgage-backed securities C) U.S. government securities D) U.S. coins
If an person believes that it is likely that interest rates will increase, she is likely to hold less
A) money. B) real assets. C) stock. D) bonds.